Deutsche Annington seen joining DAX index in rare reshuffle

Gerry Weber International AG

26/08/2015 15:47

* Deutsche Annington to join after rapid growth - analysts 
    * Deutsche Annington to replace Lanxess - analysts 
    * If Lufthansa exits DAX, Pro7 could replace it - analysts 
 
    FRANKFURT, Aug 26 (Reuters) - Deutsche Annington  ANNGn.DE  
is expected to win a spot on the DAX index of leading German 
shares next month, representing the real estate sector for the 
first time after acquisitions helped it to expand rapidly. 
    Deutsche Annington is poised to replace Lanxess  LXSG.DE , 
the world's largest synthetic rubber maker, in the first 
shake-up of the country's top share index in three years. 
    "This change is as good as decided," said one market 
watcher, who declined to be named. 
    Dropping out of the DAX will put more pressure on shares of 
Lanxess as index-linked funds remove it from their portfolios 
and replace it with Deutsche Annington stock. 
    The market value of Deutsche Annington, which is changing 
its name to Vonovia, has more than tripled to around 13 billion 
euros ($14.9 billion) from about 4 billion when it was first 
listed on the stock exchange in 2013. 
    Also at risk of demotion is Lufthansa  LHAG.DE , one of the 
DAX's original members, which has lost 20 percent of its value  
this year as it battles to cut costs enough to keep up with 
airline rivals. 
    The 30 names making up the DAX  .GDAXI  are reviewed 
annually but have remained unchanged since September 2012. In 
contrast, the UK FTSE 100  .FTSE  is reviewed every quarter, 
usually leading to some changes. 
    Membership of the DAX is dependent on two criteria -- 
trading volumes and the value of the shares in free float. 
    Lanxess has lost about 30 percent of its value since it 
joined the DAX in the last reshuffle three years ago, making it 
the smallest company on the index with a market capitalisation 
of 4.2 billion euros. 
    The second-smallest is Lufthansa  LHAG.DE . 
    The possible exit of the German airline would pave the way 
for the entry of media group ProSiebenSat.1  PSMGn.DE , which 
has been leapfrogged in the queue after Deutsche Annington 
increased its capital to fund acquisitions. 
    "Until then, the media group was the undisputed favourite 
for the DAX," LBBW analyst Uwe Streich said. 
    The DAX changes will be announced by stock exchange operator 
Deutsche Boerse  DB1Gn.DE  on Sept. 3 and take effect on Sept. 
21. 
    Analysts see Hella  HLE.DE , a manufacturer of auto 
headlights and electronics, recently floated lender Deutsche 
Pfandbriefbank  PBBG.DE  and real estate group Alstria Office 
 AOXG.DE  as possible candidates for the mid-cap MDAX index 
 .MDAXI  in the reshuffle. 
    Making way for them could be fashion group Gerry Weber 
 GWIG.DE , automotive supplier ElringKlinger  ZILGn.DE  and 
steel distributor Kloeckner & Co  KCOGn.DE . 
  ($1 = 0.8724 euros) 
 
 (Reporting by Daniela Pegna; Writing by Maria Sheahan; Editing 
by Keith Weir) 
 ((maria.sheahan@thomsonreuters.com; +49 69 7565 1286; Reuters 
Messaging: maria.sheahan.thomsonreuters.com@reuters.net)) 
 
Keywords: GERMANY STOCKS/